My second selection comes from my own country. Thomson Reuters (TRI) is one of the world’s leading providers of information for businesses and professionals worldwide. Its chairman, David Thomson, is Canada’s wealthiest person, thanks in large part to the Thomsons’ 55% interest in the company, which generated $12.4 billion in 2012 revenues, and $1.7 billion in free cash flow. With a market cap of $29 billion, Thomson’s interest comes to $16 billion.
In terms of the board, the Thomson family has two members represented (David and his brother Peter) as well as two non-family members associated with Woodbridge Corporation, the family’s holding company. Although TRI stock has performed poorly during the past five years, it has achieved an annualized rate of return of 11.7% over the past decade — 563 basis points higher than the S&P 500.
Long-term, Thomson Reuters has proven it can get the job done.